Interaction between Ownership Structure and Systemic Risk in the European financial sector

Carlo Bellavite Pellegrini (), Rachele Camacci (), Laura Pellegrini () and Andrea Roncella
Additional contact information
Carlo Bellavite Pellegrini: Dipartimento di Politica Economica, DISCE,& Centro Studi Economia Applicata (CSEA), Università Cattolica del Sacro Cuore, Milano, Italy
Rachele Camacci: Centro Studi Economia Applicata (CSEA), Università Cattolica del Sacro Cuore, Milano, Italy
Laura Pellegrini: Dipartimento di Scienze Aziendali, Università di Bergamo, Bergamo, Italy - Centro Studi Economia Applicata (CSEA), Università Cattolica del Sacro Cuore, Milano, Italy

No dipe0030, DISCE - Working Papers del Dipartimento di Politica Economica from Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE)

Abstract: This paper aims to empirically test the interaction between systemic risk and corporate governance factors in the European banking framework on a balance panel data of 96 listed banks from 19 countries during the period 2011-2020. The purpose is to understand the role of a corporate governance’s specific issue for the systemic risk, throughtout a period that saw Europe been signed by financial turmoil’s long tail and the ‘whatever it takes’ recovery. Among the available possible governance features we focus on the ownership structure, as the literature shows that it affects the performance of the firm, both on profitability and risk. We choose the European context since its eterogeneity and the presence of a high level of institutional ownership. To measure systemic risk, we will adopt the CoVaR approach (Adrian and Brunnermeier, 2016). Our results show that ownership concentration decreases systemic risk over the period analized, meanwhile institutional investors’ high presence increases it.

Keywords: Corporate Governance; Ownerhsip Structure; Institutional Investors; Systemic Risk (search for similar items in EconPapers)
JEL-codes: G10 G21 G32 (search for similar items in EconPapers)
Pages: 31
Date: 2023-02
New Economics Papers: this item is included in nep-ban, nep-cfn and nep-eec
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://dipartimenti.unicatt.it/politica-economica-DIPE0030.pdf First version, 2023 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ctc:serie5:dipe0030

Access Statistics for this paper

More papers in DISCE - Working Papers del Dipartimento di Politica Economica from Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE) Contact information at EDIRC.
Bibliographic data for series maintained by Fabio Montobbio ().